online-casino-australia

The State of Victoria to Charge 8% Online Gambling Tax

The state government of the Aussie state of Victoria has recently announced that it intends to impose an 8 percent tax rate in online gambling companies operating within the state’s south-eastern borders. As is stands, the state’s online racing and sports industry are worth an estimated AU$1.2 billion – domestic gambling companies are, however, disadvantaged compared to foreign operators who have thus far managed to steer clear of paying taxes.

“Essentially you’ve got a situation applying at the moment where online gambling operators are effectively avoiding tax — they don’t pay a cent of tax when they are providing product into this state,” explains Tim Pallas, the Victoria state secretary, and treasurer. “They are not paying their fair share and have an unfair advantage against domestically based products.”

According to Pallas, the new tax directive is set to take effect on the 1st of January 2019 and is anticipated to raise about AU$30 million (which is equivalent to $22.6 million) in tax revenue annually for the state coffers. In addition to this, the operators will be required to put in place measures to ensure that the online bets being placed on their sites are from within the state of Victoria. The state treasurer confirmed that he and his counterparts are committed to ensuring that the online betting operators do not try to palm off their tax liabilities onto their customers using underhand and malicious book adjustments.

The proposed 8 percent tax rate is nearly half of the tax rate that other Australian states have already or are planning to implement – South Australia implemented a 15 percent Point of Consumption Tax rate in July 2017 with Western Australia and Queensland following suit with plans of similar tax rates.

Mixed Reactions

Stephen Conroy, a former member of the Australian Parliament and current head of the Responsible Wagering Australia (RWA), and his team have been lobbying for a tax that is below 15 percent arguing that the gambling companies were not yet profitable enough to raise the 15 percent in tax revenue. The lobbying for lower taxes also stems from the argument that the betting operators and gamblers are already paying a significant 10 percent charge.

However, while the RWA has not been opposed to Victoria’s new tax rate, Conroy has pointed out that the issue is not quite as straightforward as it may appear.

“The online wagering industry already pays a significant amount of consumption tax through the GST, as well as corporate income tax to the federal government,” Conroy said. “An 8% does not adequately account for these significant contributions and will result in Victoria having one of the highest effective wagering tax rates in the world.”

The statement implies double taxation but Pallas has been unrelenting to the concern saying that all the factors that may come into play have been taken into account. It seems Pallas’ main agenda is to keep the industry intact.

“The aim here is to make sure that we do no harm to the racing industry but we stop the leakage in revenue that should properly be the just desserts of Victoria,” Pallas said.

More News

Does Mobile Sports Betting Have a Future in New York?
At the beginning of April 2019, New York lawmakers opted to leave mobile sports betting out of the state’s FY
Read more.
Two Arkansas Racetracks Reopen as Full-Scale Casinos
In November 2018, Arkansas was one of the states that were voting in favor in of gambling expansion. Earlier this
Read more.
West Virginia Legalizes Online Gambling and Poker
West Virginia is now the fifth state in the United States to have given the green light for an online
Read more.
Virginia Advances Casino Gambling, Sports Betting Bill
The Virginia General Assembly has made a historic move by supporting the legalization of sports betting and casino gambling by
Read more.
St Patrick Smiles on Hawaiian Who Wins $1m in Las Vegas
Las Vegas is a place where quite a few interesting stories begin, and sometimes even end. A Hawaiian visitor of
Read more.
Bet365 Prepares to Debut in the United States
Renowned United Kingdom-based online gambling operator Bet365 is a step closer to offering its gaming services to the growing sports
Read more.
Carl Icahn Ups Stake to Become Caesars’ Largest Shareholder
Entities related to New York billionaire, Carl Icahn have in the past week purchased 38.9 million shares of Caesars Entertainment
Read more.
Keystone State Marks March Gambling Awareness Month
Jennifer Smith, the Keystone State’s Drug and Alcohol Programs (DDAP) Secretary has today officially kick-started the activities that mark Mars
Read more.
Virginia General Assembly Passes Casino Legislation
Last Saturday, the General Assembly of the state of Virginia passed compromise legislation that would effectively introduce the state –
Read more.
AGA Pens Advisory Letter on Gaming Priorities to US Congress
The United States’ gaming industry has seen a lot of ups and downs but it goes without saying that it
Read more.

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll Up